The right answer is b. The output units sold totaled 8,000. The sales revenue reached $9,600,000. Variable costs stand at $6,000,000, with fixed costs amounting to $2,600,000. The product's price is $1,200. Average variable cost calculates to $750. Profit calculation results in TR - TC, hence Profit = $1,270,000 = $1,200Q - $750Q - $2,600,000. Resulting in $3,870,000 = $450Q, thus Q is 8,600 units.
Answer:
Option (D) is the right choice.
Explanation:
According to the Modigliani-Miller proposition, the cost of equity will adjust in a way to accommodate its debt obligations.
Cost of equity:
= WACC for an all-equity firm + (WACC for an all-equity firm - Cost of debt ) × (Debt-to-equity ratio)
Initially, when no debt was present,[ [TAG_20]]
WACC = cost of equity = 10%
The levered cost of equity:
= 10% + ( 10% - 6%) × 0.2
= 10.8%
Thus, Taggart's levered cost of equity would be approximately 11%.
If employees report him for fraud, he could face legal repercussions.
Explanation provided below.
Answer:
To achieve a strong credit score, one must consistently manage debt repayments since they began borrowing.
Your friend is mistaken in thinking that everyone who made all payments on time within a single year has a high credit score, as this view overlooks prior years' activities.
Some individuals might have missed payments on earlier loans but managed to maintain timely payments in 2015. Although this can enhance their credit score, the score would still reflect a lower value due to previous behaviors that negatively impacted it.
